German Health Minister proposes tax breaks for private care insurance

German Health Minister Nina Warken has called for greater tax incentives to encourage private long-term care insurance, advocating for a stronger role for private savings in financing future care needs.

Warken, a member of the CDU party, stated that individuals should find it more appealing to take out supplementary private insurance policies. She believes that private provision must become a more significant component of how long-term care is funded. To achieve this, she proposed allowing individuals to deduct premiums paid for private care insurance as special expenses on their tax returns.

This initiative is part of the government's planned reforms aimed at closing the widening funding deficit in the statutory long-term care insurance system. The proposal is still awaiting discussion within the federal government.

The minister's suggestion aims to increase the attractiveness of private long-term care insurance, thereby encouraging more citizens to build up their own financial reserves for potential future care requirements. The specifics of the tax benefits and the implementation timeline are yet to be determined.

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It must become more attractive to take out private care insurance in addition. Private provision must become a stronger component of long-term care financing.